Role call
Senior management and directors must
understand what the practices of the
organisation really are and what their stated risk
appetite is -- versus what really goes on.
Getting this kind of traction m ay involve:
• Educating the board and discussing some clear
and relevant examples.
• Use some fexibility in the reporting.
Providing a simple summary in an executive
level introduction or one -page paper,
highlighting the most important and then
more detailed infor mation backing up the
summary as appendices for those directors
interested.
• Take some lessons from education theory.
Consider different learning styles, make use of
graphics, experiential learning or examples of
the kinds of risks and consequences that are
being illustrated.
• Use visual and auditory resources if that is
possible.
• Use a case studyofan example thathasbeenin
the press and replicate what the results of the
same example occurring in their organisation
might have looked like.
This could involve revenue loss figures, costs
for implementing changes as a consequence of
the risk being realised.
• Scenario planning is a valuable tool for
exploring risks and opportunities in the long
term and making a risk and potential outcome
'real' to those who need to under stand the
implications - rather than just taking your
word for it.
• Drop technical terms if they aren’t easily
understood -- or worse still -- are easily
misunderstood.
• It may also be possible to translate some of the
consequence terms to the dollar impact on the
business, should the risk be realised.
• Enlist the assistance of other senior managers
or subject matter experts to co -present
or author papers on case studies or future
scenarios to give validity to the reporting.
• Never forget (or let the boa rd and senior
management forget) that the human and social
elements that interplay with your activities
pose or may increase risk, particularly
operational risk.
• Demonstrate your value, not only
highlighting the potential disasters, but by
actively seeking the opportunities inherent in
risk.
• Above all, make the discussion and debate real
and relevant to your audience. •••
RISK
MANAGEMENT
20 GRC Professional • Autumn 2013